Small businesses could soon make huge foreign exchange savings » SMEInsider

Small businesses could soon make huge foreign exchange savings

Financial technology firms TransferWise and Xero have collaborated to ensure that SMEs no longer have to pay hidden charges on foreign currency invoices.

Small business owners could save up to 89% when they send foreign currency invoices direct from Xero.

TransferWise was founded by Taavet Hinrikus and Kristo Käärmann. They both had economic ties in both London and Estonia, so they devised a plan where they would check the exchange rate each day and transfer money into each other’s bank accounts through the fairest exchange rate.

‘‘Kristo then transferred pounds into my UK bank account, and I topped up his account with euros. Both of us got the currency we needed, and neither of us paid a cent in hidden bank fees. From there, TransferWise was born,’’ said Hinrikus, co-founder of TransferWise.

The collaboration between TransferWise and Xero will help many customers work around commission fees and bank charges when operating on the foreign exchange.

This partnership is fantastic for many of our small business customers that are dealing with different markets around the globe. Small businesses can now easily avoid paying banks those hefty 3-6% commissions, instead paying just a small fee and using a fair exchange rate,’’ said Gary Turner Xero managing director.